The EDC machine is a standard payment machine. Because we live in an era of economic globalization and the Internet, it is a given that every literate and competent person possesses a minimum of one bank card, whether it is a debit or credit card. Even if mobile payment is becoming more widespread, deduction involves tying your payment account to your bank card. That being said, let’s go back to basics and explore the fundamentals of an EDC machine and discover what it exactly entails.
What is an EDC Machine?
The EDC machine full form stands for Electronic Data Capture. It’s also an EDC card machine or a credit card swipe machine. It is a payment terminal that allows customers to complete transactions by swiping or dipping cards and ensures that businesses receive money.
When a card is swiped or tapped, the EDC machine collects its vital data (card name, card number, transaction amount, etc.) and sends it to the card issuer for authentication through SMS, email, phone, or wireless phone Internet. It will also keep track of the transaction’s location, date, and time for future reference. It promotes the protection of rights and interests while also making transactions easier for both customers and merchants.
Various platforms offer a 360-degree solution for expanding your business across countries via software and API solutions for accepting payments and managing operations. If you want to develop your e-commerce services across numerous industries, you should use these platforms. They also provide the option of deferring EMIs on debit and credit cards. You may also utilize their application’s credit card EMI calculator to see the amount split and payback for a specific transaction, among other things.
What are the Benefits?
Even though mobile payment and digital money have taken over the payment business, the EDC machine plays a significant role. Here’s why the EDC machine is so valuable and indispensable.
Accessibility: Because credit cards are so popular, most people have two or three of them, and the EDC machine lets them pay with whatever bank card they want, at any time and from anywhere. Compared to the mobile payment’s tiny transfer amount restriction, the EDC machine may give a more significant transfer amount on that basis.
Security: The bank typically provides or certifies the EDC machine. The latter has a solid digital authentication and identity verification security mechanism to assure secure and reliable fund settlement. It can also cut the cost of bank counter transactions and the danger of cash theft and receiving counterfeit money.
Satisfy client demand: The EDC machine is a critical payment terminal for cardholders that cannot be replaced. When they pay with a credit card, they can earn points or receive additional perks, which might help them deal with financial issues when they are short on cash. Furthermore, it is constantly developing to accommodate the changing payment patterns of more clients. Today’s EDC machines accept credit card payments as well as NFC, pay with QR code, and biometric-based payments.
Financial management: The EDC machine, with its electronic data capture and one-click print transaction flow feature, allows users to observe daily sales at a glance and, to some extent, automates the process of manually collecting and evaluating sales data.
Increase revenue: According to studies, credit card usage may quickly improve a merchant’s revenues by 40%. Installing an EDC machine in a store can boost consumer spending power since customers are more likely to purchase at a store that accepts UnionPay. That’s because credit cards have a one-month interest-free period, and users may avoid paying interest if they pay the money back to the bank before the due date.
Environmental protection: To a considerable extent, the EDC machine may minimize the risk of cash management for businesses and merchants, as well as lessen the labor of manual cash collection, counting, change, and storage. Most significantly, compared to cash transactions, it is more hygienic and ecologically friendly.
How Does an EDC Machine Function?
First, give your credit card to the staff, who will insert it into the EDC machine and slide it through a bit of slit. The EDC machine will then extract and display the critical information engraved on the credit card, such as the cardholder’s name, number, and expiration date. It will also keep track of the store where the transaction takes place.
The collected data will be processed in a matter of seconds before being sent to the merchant service provider through wired or wireless Internet. The money will be sent to the merchant once the data has been approved.